Moderna Stock Surges 126% After Cancer Vaccine Trial Success

Moderna shares surged more than 120% on Wednesday, sending the biotechnology company’s stock to what could become its strongest trading day ever after the company reported positive results from its first late-stage trial of an experimental cancer vaccine.

The stock climbed 125.9% to about $142 in early trading after rising more than 100% during premarket activity. The sharp increase more than doubled Moderna’s share price as investors responded to the results from the company’s cancer vaccine program.

Moderna and Merck announced that their personalized cancer vaccine reduced melanoma recurrence in a Phase 3 trial involving more than 1,100 patients. The companies also said the treatment significantly extended the period patients remained free of melanoma following treatment.

The experimental therapy combines an mRNA-based personalized vaccine developed by Moderna with Merck’s immunotherapy drug Keytruda. The results represent the first successful Phase 3 study for an mRNA-based cancer treatment. Merck shares also gained 6.5% in early trading following the announcement.

The jump in Moderna’s stock sharply increased the wealth of several people associated with the company. Co-founder Robert Langer returned to billionaire status, with his estimated fortune rising to about $1.7 billion from roughly $730 million the previous day. Langer is believed to retain a 3% stake in Moderna, although his holdings are no longer publicly disclosed.

Fellow co-founder Noubar Afeyan added about $184 million to his fortune, bringing it to approximately $2.1 billion. Moderna CEO Stéphane Bancel’s wealth increased by about $2.5 billion to $4.8 billion, while founding investor Timothy Springer gained roughly $948 million, lifting his fortune to $2.2 billion.

Melanoma remains a significant health concern in the United States. About 112,000 new melanoma cases are expected to be diagnosed annually, while approximately 8,510 people are projected to die from the disease, according to the American Cancer Society. The organization identifies lighter skin as a major risk factor and notes that melanoma risk increases with age.

Moderna’s stock had started the year at a much lower level, reaching $29.81 during its first trading session on Jan. 2. The shares had subsequently climbed by nearly 300% to their Wednesday premarket level before the latest trading surge.

Investors had been closely watching the results of Moderna’s latest mRNA vaccine program. The company’s mRNA technology has also faced criticism from Health and Human Services Secretary Robert F. Kennedy Jr., a prominent vaccine skeptic who has criticized mRNA COVID-19 vaccines and said he would cancel nearly $500 million in contracts and grants supporting the development of such vaccines.

Leerink Partners analyst Mani Foroohar wrote in June that the outcome of Moderna’s late-stage trial could represent a make-or-break moment for the company’s stock. Expectations had centered on whether the experimental treatment could eventually prove effective across multiple types of cancer.

Moderna and Merck are continuing to study the vaccine combination in additional trials involving other cancers, including non-small cell lung cancer and bladder cancer.